**Abstract**

A microgrid has a group of electrical generation and various types of loads operated as single controllable power system. Microgrid is a best option for configuration of recent model power grids. Microgrids are capable of work in parallel with the existing grid as well as off grid as isolated mode. The microgrid enables the grid connection as either AC grid or DC grid and it provides connections of variable AC and DC sources with loads. Microgrid has modeled such a way that it avoids multiple reverse connections. Power electronic devices such as converters and inverters are ensures safe operation and control of the microgrid. The proper modeling and simulation results ensure the successful implementation of microgrid. The challenges involved in implementation and the modeling of AC/DC and hybrid grid in the tied mode have been discussed. The simulation modeling of the microgrid in MATLAB/SIMULINK platform is explained with neat circuit diagram. This chapter provides the readers complete and comprehensive overview about microgrids and their different modes of operations.

**Keywords:** microgrid, AC grid, DC grid, renewable energy, MATLAB/SIMULINK
